Malta's IIP improves

Malta’s net international investment position (IIP) at the end of last year amounted to €769.5 million, the National Statistics Office said.

The IIP statement is a summary balance sheet showing the country’s stock of external assets and liabilities is-à-vis the rest of the world as at the end of a particular period.

The compilation of the IIP is in line with international statistical standards.

The IIP reflects the net foreign assets - the balance of foreign assets less foreign liabilities. The drop in foreign assets from year-end 2008 to year-end 2009 was estimated at €1,361.7 million, while the drop in foreign liabilities amounted to €2,079.9 million.

This resulted in an improvement of €718.2 million in the IIP when comparing end-2009 with end-2008.

The drop in foreign assets from year-end 2008 to year-end 2009 was mainly due to the net repayment and exchange rate difference of loans, amounting to €4,276.1 million.

However, this was in part offset by an increase in the value of long-term portfolio investment assets, amounting to €2,246.5 million in the same period.

Foreign direct investment abroad also increased by €272.5 million during the 12-month period being compared.

A decrease in loan liabilities of €1,953.5 million was also the primary cause of the decline in foreign liabilities when comparing end-2009 to the corresponding period in 2008.

During the same period, foreign direct investment in Malta advanced by €625.3 million.

The position of the official reserve assets as at the end of December showed an increase of €105.5 million over that prevailing at the end of December 2008.